FGS Go! outlays reach HUF 2.22 tln
MNB building in Budapest.
Image by posztos / Shutterstock.com
Outlays of the Funding for Growth Scheme (FGS) Go!, a central bank program that aims to ensure SMEs cheap credit during the coronavirus crisis, have reached HUF 2.22 tln, the National Bank of Hungary (MNB) said according to a report by Hungarian news agency MTI.
The credit went to more than 34,000 businesses, MNB said.
The central bank launched FGS Go! - an extension of its Funding for Growth Scheme started in 2013 - in April 2020 to mitigate the economic fallout from the coronavirus crisis. Under the scheme, MNB is providing lenders with HUF 2.5 tln of 0% financing for microbusinesses and SME loans with fixed rates capped at 2.5%. The scheme is open to a broader range of businesses and conditions have been eased.
MNB said 33% of FGS Go! contract volume has been for new investments, while 56% has been for working capital and 11% is for refinancing earlier investment loans. About three-fourths have gone to SMEs in commerce, manufacturing, property development, farming and construction. Around 30% of the credit has gone to microbusinesses, while 35% has been disbursed to small businesses.
In April, MNB policymakers raised the allocation for FGS Go! from HUF 2.5 tln to HUF 3 tln.
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